THE CENTRAL BANK will today set out new changes to mortgage lending rates.Since 2015, people seeking a mortgage can only borrow three-and-a-half times their yearly income. This is expected to be at the centre of the announcement later this morning, with a change to this level anticipated, allowing people to borrow a greater amount.
A review of mortgage lending began last year, with the Central Bank saying at the time that Ireland can learn from the experiences of other countries. At all points in time, there is a role for ‘guardrails’ to lending standards. They support good lending practices, preventing the widespread financial difficulties that we saw a decade ago due to unaffordable debt levels. They also aim to reduce the risk of another credit-fuelled house price boom. It’s expected that the announcement will be made public at 10.45am.
The report found median total household income of first-time buyer borrowers increased from €71,000 to €77,000 between 2019 and 2021.